Sri Lanka’s mineral sector faces a major reset as the government halts heavy mineral licenses, promising transparency, tighter control, and an end to politically backed illegal mining.
The government has announced a temporary suspension on the issuance of all mineral mining licenses, except those linked to the construction industry, until a new National Mineral Policy is approved by the Cabinet, passed by Parliament, and fully implemented. Minister of Industry and Entrepreneurship Development Sunil Handunnetti made the announcement at a special media briefing held at his ministry today.
The Minister clarified that the suspension will not affect the extraction of construction-related materials such as sand and stone, ensuring that housing projects and infrastructure development continue without disruption. However, all exploration and mining licenses for heavy minerals including ilmenite, rutile, zircon, and garnet have been put on hold until the new policy framework comes into force.
Addressing the media, the Minister explained that a new National Mineral Policy has already been drafted with the objective of maximizing national benefits from Sri Lanka’s mineral resources. The policy has been submitted to the Cabinet and is expected to be gazetted and presented to Parliament before the end of March. He added that the entire licensing process will be digitized to eliminate arbitrary decision-making, strengthen transparency, and prevent abuse of authority.
The Minister also addressed allegations surrounding mineral sand mining in the Mirippawila area. He categorically stated that no private company has been granted permission to extract mineral sand under the current administration. According to him, a letter issued in September 2024 related only to transportation and did not constitute a valid exploration or mining license, dismissing social media claims as false and misleading.
Highlighting the scale of losses caused by illegal mining in previous years, the Minister said the country had suffered enormous damage due to politically protected operations and unpaid royalties. To address this, the President has approved the establishment of a dedicated “Quick Raid Unit” to crack down on illegal mining activities and enforce compliance.
The media briefing was attended by Additional Secretary Mahesh Abeysekara, GSMB Chairman J. M. S. N. Jayasinghe, and Director Geologist D. P. R. Weerakoon.
